Barclays has finalised its £600m acquisition of Tesco's banking division, following high court approval on 17 October.
Under a decade-long partnership, Barclays will commence operations and management of Tesco Bank, as reported by .
Tesco will retain all existing insurance and money services activities, including ATMs, travel money and gift cards, with the supermarket highlighting these as "capital-light, profitable businesses with a strong connection to the core retail offer".
Post-acquisition, Tesco announced it would return £700m to shareholders via an incremental share buyback, set to start after the completion of its current £1bn buyback scheme.
The Big Four bank, having announced the takeover in February, has now taken over Tesco Bank's 2,800 employees in offices in Glasgow, Newcastle, Edinburgh and Reigate, along with billions in customer deposits, credit card receipts and unsecured personal loans.
"We are delighted to be working alongside Barclays to unlock even greater value for Tesco Bank customers," commented Tesco group CEO Ken Murphy.
"Through our strategic partnership, customers will have access to new and innovative propositions, while continuing to enjoy the unique benefits of Tesco Clubcard."
"This acquisition is an important step in increasing our investment in the º£½ÇÊÓƵ," stated Barclays group chief executive CS Venkatakrishnan, emphasising the significance of the Tesco Bank deal for Barclays.
"We look forward to collaborating with Tesco Group on delivering Tesco-branded financial services. We are delighted to welcome all transferring Tesco Bank employees and customers to Barclays."
This announcement follows a surge in Barclays shares to a nine-year high last week, as the bank's pre-tax profit exceeded analyst expectations with an 18 per cent increase over the past year.
"Today marks a significant step as we continue to grow Barclays º£½ÇÊÓƵ," Barclays º£½ÇÊÓƵ chief executive Vim Maru further commented.
"We will bring the strength of both businesses together, benefitting customers and colleagues. I am excited that the combination of our brands, alongside the benefits of Clubcard and its loyalty scheme, will support millions of households across the º£½ÇÊÓƵ with their financial needs."
